Australian Energy Giant Woodside Completes Sale of Interest in Louisiana LNG Project to Stonepeak
Australia’s energy giant Woodside has successfully completed the sale of an interest in its liquefied natural gas (LNG) development in Calcasieu Parish, Louisiana to Stonepeak, a New York-based investment firm specializing in infrastructure and real assets.
The transaction for the sell-down of stake in Louisiana LNG, which was announced in April, has now been finalized. Stonepeak now owns a 40% interest in Louisiana LNG Infrastructure (InfraCo), while the remaining 60% is held by Louisiana LNG (HoldCo), the holding company operated by Woodside.
As part of the deal, Stonepeak will provide $5.7 billion towards the expected capital expenditure for the foundation development of the project on an accelerated basis and contribute 75% of the project capital expenditure in 2025 and 2026.
Woodside has received a closing payment of approximately $1.9 billion, reflecting Stonepeak’s 75% share of capex funding incurred since the transaction’s effective date of January 1, 2025.
Partnership Enhances Louisiana LNG Project
Woodside’s CEO Meg O’Neill expressed confidence in Stonepeak as a high-quality partner that would add further value to the Louisiana LNG project. She sees the partnership as a key milestone towards achieving a final investment decision (FID).
O’Neill commented, “The accelerated capital contribution from Stonepeak enhances Louisiana LNG project returns and strengthens our capacity for shareholder returns ahead of first cargo from the Scarborough Energy Project in Western Australia, targeted for the second half of 2026. We continue to see strong interest from additional potential partners in Louisiana LNG.”
The $17.5 billion FID for the project, made in late April, is considered the largest single foreign direct investment in Louisiana’s history.
Stonepeak’s Perspective
James Wyper, Stonepeak Senior Managing Director and Head of US Private Equity, highlighted the strategic importance of Louisiana LNG in the US LNG export landscape. He emphasized the growing global demand for cleaner, more flexible, and more affordable energy and expressed enthusiasm for supporting the development of critical North American LNG infrastructure.
Development of Louisiana LNG Project
Formerly known as Driftwood LNG, the Louisiana LNG project is located near Lake Charles, Louisiana and is fully permitted with a total capacity of 27.6 million tonnes per annum (mtpa) across five trains. The approved foundation project includes three trains with a combined capacity of 16.5 Mtpa.
Front-end engineering design (FEED) for the project is complete, and site construction has commenced. The project envisions the construction of five LNG plants through four phases, with Bechtel handling the engineering, procurement, and construction (EPC) portion.
Following the FID, Woodside has entered into agreements with BP for gas supply and expressed interest from Aramco in acquiring an equity interest in an offtake from Louisiana LNG. Additionally, a recent deal with Petronas was signed for the supply of 1 mtpa of LNG for 15 years, starting in 2028.